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Technical Market Action After a slow irregular decline in the early hours of Thursdays market, the market rallied in the afternoon and regained the days losses to close higher on the day. 'the industrial average was up 1.12 on the day while the gained 18. 'Volume increased on the rally with an average hourly turnover of approximately 240,000 shares than 200,000 hourly aver- age during the morning irregularity. ' .The market, in the face of unfavorable news developments, has been putting on a remarkably good performance. Volume continues to dry up on declines, and increa3e on the rallies. Coupled with the ability of industrial issues to move ahead sharply into new territory, the action of the market has been much better than expected. However, from a technical viewpoint, the pattern still remains extremely uncertain. Under the Dow theory, the picture will not be changed until the rails confirm the April penetration of the industrials of the February highs. Waiting for this Signal, however, may require considerable patience and entail missing a good portion of the moves in other sections of the list. Would be satisfied if the two combined averages, the Dow Jones 65 stock average (now 76;59) and the New York Times 50 stock average (now about 142) were able to better their February highs of 77.92 and 144.71. In that event, believe possibilities would favor the resumption of the intermediate and long term advance which been stalled Since Waiting for this signal would necessitate possibly losing point or two of the advance, but as a matter of caution, would consider it insurance against the possibility a Sizeable decline if the pattern turns out unfavorably. In the meantime, continue to advise. liquid position in intermediate term trading accounts. May 16, 1946. TABELL SHIELDS & COMPANY CLOSING \ Don-Jones Industrials Dow-Jones Rails 206.17 63.96 The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

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Technical Market Action The market continued its advance on Wednesday for the third successive day with the rails again the best acting group. Activity increased on the advance with transactions totalling 1,590,000 shares. All three averages closed higher with the rails up 1.16, the up 75 cents and the utilities up 27 cents. The 65-Stock Composite average closed 59 cents higher at 77.71. The action of the rail average is impressive. While the average, at the closing price of 66.14,1s still more than two points the February high of 68.42, Wednesday's action was significant inasmuch as the April high of 65.63 was decisively penetrated, The rail average is now in un uptrend channel. As yet, the industrials have not penetrated the April high of 209.36. In fact, at Wednesday's high of 208.38, the average was also below the May high of 208.66. The 65-Stock Composite average at the closing of 77.71 was also below the February high' closing of 77.80. As mentioned before, a close above 78 in this average and a close above 145 in the New York Times 50-Stock average would be of considerable bullish significance. latest figures on the Times average are not available at present writing. While the picture is still uncertain until these averages succeed in reaching new high territory, the action of the rail average and of individual rail issues indicates a cautious buying policy in selected rails. In the last letter, suggested the purchase of Northern Pacific if 32 was reached and of Southern if 63 was reached. Northern Pacific hit this point on Wednesday and closed at 31 7/8. Purchase is advised. Southern Pacific reo.ched.63 on Tuesday and reached a high of 65 1/4 on Wednesday. Technically, the stock indicates higher levels. Two other rail issues with interesting technical patterns are Baltimore & Ohio and Western Pacific. Baltimore & Ohio has, for the last three months, built up a trading range between the full figure points of 25 and 22, with the actual low 21 1/2. The year's high was 30 1/2. The stock broke out of this range on Wednesday to reach a high of 26 and closed at 25 3/4'. Purchase is advised. Western Pacific closed at 54. For a long time, the issue has fluctuated in the 57-45 range, with this year's high and low being 56 and 46 1/2. While actually the stock has not broken out of its range, believe the action of. the rail average warrants purchase of Western Pacific because of the large possible base area formation. May 22, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails 208.00 66.14 The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

Technical Market Action On increased volume, the market moved ahead-on Monday to reach new bull market high territory on both the Dow-Jones industrial average and the 65-Stock composite average. While the figures on the New York Times and New York Herald-Tribune average are not available at present writing, it is believed that these two averages reached new high territory. While the Dow-Jones rail average, 'at the day's high of 67.18, did not penetrate the February high of 68.42, the fact that has decisively penetrated the April high of 65.63 , plus the technical patterns of individual rail issues, indicates the probability that the February high will be penetrated in the near future. While e strict interpretation of the Dow Theory requires a confirmation by the roil average, the writer is of the opinion, as stated in recent letters, that a decisive penetration of the February highs by the three combined stock averages (Doll-Jones 65-Stock, New York Times and New York Herald-Tribune) would be sufficient to indicate a confirmation of the uptrend. This has, I believe, occurred and would now the 'market in trading accounts. This does not mean that the market will immediately move ahead in a straight line. There will undoubtedly be periods of uncertainty but the important signal given by Monday's penetration is that the possibility of a sizeable decline appears to be decidedly more remote. Would add a few more issues to the recommended list at this time, keeping a portion of funds available for purchase during technical corrections. Believe that the advance will continue to be selective and favor rails, railroad equipment, steels and metals. Suggest the following American Metal Bridgeport Brass General Railway Signal Hercules Motor Inspiration Copper Jones &Laughlin Lima Locomotive Miami Copper National Malleable Steel 1946 High 41 7/8 20 3/8 47 1/2 38 7/8 22 1/2 53 7/8 88 18 3/4 41 5/8 1946 Low 33 1/2 161/8 38 1/4 31 1/4 17 1/8 40 68 1/2 12 3/8 30 1/2 Monday's Close 41 3/4 18 1/2 44 34 1/2 21 3/8 48 7/8 75 171/2 34 7/8 May 27, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails Dow-Jones 209.42 66.65 78.25 The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

Technical Market Action Monday's market closed lower with all the averages showing minus signs at the close. The industrials were down 81 cents at 211.47, while the rails closed 95 cents lower at 66.92. The 65-Combined Stock average was doom 50 cents at 78.84. Volume was 1,210,000 Best acting issues included utilities and oils and some the mail order issues. , From May 20th to last Friday the industrials and rails advanced on seven trading to the extent of 7.06 on industrials and 4.09 on the rails against two days of decline totalling 58 cents and 24 cents. After such a sharp rise, the normal expectation would be at least a period of consolidation,if not a minor decline. As yet, the rail average has not confirmed the rise in the industrials with Inst Wednesday's high of 68.42 exactly equalling the February high of 68.42. However, consider the fact that the three combined averages decisively penetrated previous highs of greater importance. Based on the pattern of individual rail issues, expect a confirmation by the rail average shortly. Some of the utility holding company issues show excellent technical action. American Water Works at 28 indicates a resumption of the uptrend and a move to the 33-3 area over the, intermediate term. The close was 27 1/2. Continue to like the technical action of selected rails and heavy industry issues. Like steels, railroad equipment, machine companies, farm equipment and metals, and advise purchase on minor sell-offs. From a technical viewpoint, the formations suggest much greater profit possibilities in this group than in the consumer type issues such US stores, liquors and amusement issues. These issues had sharp price advances and in most cases, have about reached their longer term technical objectives. At best, a long consolidation period is indicated before a possible resumption of the advance. Switching from this into heavy industry shares seems indicated. June J, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials DOVi-Jones Rails Dow-Jones 65-Stock 211.47 66.92 78. The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.

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Technical Market Action Tuesday's session turned reactionary after Mr. Truman's veto message on the Case Bill. The industrial was particularly hard hit to close 1.63 lower at 209.05. The low of the day was 208.92, in comparison to last week's low of 208.33. rail average also closed lower at 66.54, down 32 cents. However, the rails acted much better than the industrials and, during month of the day, sold above the previous close. At the day's high of 67.64, the average was in shooting distance of the bull market high of 68.42,- reached both in February and May. The nay's low of 66.44 compares with last week's low of 65.64. Volume at 1,080,000 at about the average of recent sessions, although there was a pickup in activity in last hour sell-off. Believe the clue to near term market action will be given by the rail average. A penetration of the bull market high of 68.42 would be a distinctly encouraging development. Based en the technical action of individual rail issues, believe the barrier will be penetrated shortly. However, until that event occurs, Would be only partially invested in intermediate term trading accounts. Below are listed recent recommendations. Purchase is advised on soft spots. Last Price When Sale Recommended Also like the market action of Burroughs Adding Machine. At Monday's close of 21, the stock is selling close to the years high of 21 1/2, but technical pattern is very favorable. June 11, 1946 EDMUND W. TABELL SHIELDS & COMPANY Closing Dow-Jones Industrials Dow-Jones Rails 65-Composite Stocks 209.05 66.54 78.02 The opinions expressed in this letter are the personal interpretation of charts by Mr. Edmund W. Tabell and are not presented as the opinions of Shields & Company.